BILL ANALYSIS                                                                                                                                                                                                    



                                                                    SB 1044  


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          Date of Hearing:  June 29, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 1044  
          (Nguyen) - As Amended June 13, 2016


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          |Policy       |Business and Professions       |Vote:|15 - 0       |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires the Board of Barbering and Cosmetology (BBC)  
            to determine through regulations when a fine can be assessed  
            to an establishment owner and a licensee for the same  
            violation, authorizes the BBC to establish a payment plan for  
            citations that exceed $500, and makes permissive, instead of  
            requires, the BBC to deny a license or a license renewal if  
            fines are not paid, as specified. 


          FISCAL EFFECT:










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          Negligible state fiscal impact.


          COMMENTS:


          1)Purpose. This bill is sponsored by the BBC.  According to the  
            author, "This bill will not take away the responsibility of  
            the owner of the establishment, but will allow the BBC to  
            determine when the fine shall be assessed to both the  
            individual and the owner.  This allows the BBC to hold  
            individual licensees to a higher level of responsibility, by  
            ensuring that the individual who has attended school and  
            passed the licensing examination is the first line of consumer  
            protection and therefore responsible for upholding the health  
            and safety laws of the BBC.  This bill would allow the BBC to  
            work with individuals on a case by case basis to try and set  
            up a payment plan for any outstanding fines."



          2)Background. The BBC is responsible for licensing and  
            regulating over 550,000 barbers, cosmetologists, estheticians,  
            electrologists, manicurists, apprentices, and approximately  
            41,000 establishments, including but not limited to, nail  
            salons, barbers, and hair salons. 



            Licensees working in an establishment can be an independent  
            contractor or an employee of the establishment.  Independent  
            contractors are commonly referred to as "booth renters."   
            Booth renters are considered separate business entities  
            operating within the establishment and are responsible for  
            setting their own hours of operation, paying their own  
            required insurance, and maintaining a separate business  
            license.  










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            Because an establishment owner is responsible for the conduct  
            of all employees (regardless of booth renter or employee  
            status), if a violation is found by an individual, a citation  
            is issued to both the individual and the establishment owner.   
            During the BBC's last sunset review, in March of 2015, the  
            issue was raised regarding booth renter accountability, in  
            that establishment owners are being held accountable for the  
            deficiencies and subsequent violations of booth renters, and  
            individual licensees, not owners, should have to comply with  
            regulations and deal with enforcement actions. It has been  
            reported that establishment owners believe they already have  
            many laws and regulations to comply with and that if something  
            is cited at the station of a booth renter, the establishment  
            owner should not be forced to oversee that renter, and  
            potentially receive a citation and fine for that individual's  
            actions. Owners do not want to be held liable for the actions  
            of individuals who, in their eyes, are independent  
            contractors.  





            By requiring the BBC to establish through regulation when a  
            fine should be assessed to an individual and an establishment  
            owner or to an establishment owner or an individual, this bill  
            seeks to address the issue of establishment owners being fined  
            along with booth renters for the same violation.  





            In the BBC's 2014 Sunset Review Report, it was reported that  
            the health and safety infractions most often cited are  
            violations of rules regarding the disinfection and storage of  








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            tools, implements, instruments, and products. The top  
            non-health and safety-related violation is not properly  
            displaying establishment or individual licenses as required in  
            Title 16 California Code of Regulations Section 965.   
            Currently, licensees are not able to renew a license unless  
            they have paid all fines as required by the BBC.  This bill  
            will revise the current prohibition for licensure renewal if  
            fines are not paid, and provide the BBC with discretion in  
            authorizing a renewal for applicants who may not have all  
            fines or citations paid as a result of a payment plan as  
            determined by the BBC.  


          


          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081